Spanish Unemployment

Is There a Solution?

et al., Olivier Blanchard
Release Date: July 1, 1995

Is there a solution to Spanish unemployment? Currently standing at an extraordinary rate of 25% of the workforce, its reduction to 5% within 10 years requires the annual creation of 400,000 jobs, and economic growth of at least 5% a year. This report contends that such a goal is not only possible, but that it should be the primary focus of Spain’s economic policy. It consists of a straightforward policy statement of the proposed strategy plus a series of more technical papers covering the basic facts of Spanish unemployment, the evidence on aggregate wages and unemployment, demand constraints and the stance of fiscal and monetary policies, and microeconomic aspects of the country’s labour market.

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